As a first time home buyer, do know the first thing about the cost of buying a house? Most first time buyers don't. Here are some things to keep in mind when you get ready to make the largest financial decision of your life. A mortgage broker marketing company will be your best bet to get all the information you will need to make the purchase. Use this as general information or your personal mortgage marketing tool.
First of all, consider how much can you afford? A mortgage marketing company will tell you that the average person can afford a house that cost about 3 times their annual income. So with an income of $40,000 a year, a person could afford a house that costs about $120,000.
Wow, where are you going to get $120,000? Don't worry. If you qualify, you will take a loan from a bank to pay for the house. This is called a mortgage. Mortgages can be paid back within years of taking the loan such as 30 years. A mortgage marketing tool, sometimes known as a calculator can calculate the price of a home you can afford. It can also calculate the monthly payments you will make depending on the amount of the loan and the size of your down payment.
Down payment? What's that? A down payment is up front money you will make to the bank that is offering you the loan. The larger your down payment, the lower your monthly payment will be. In general, a bank will want to see at least 3% to 20% of the cost of the house as your down payment.
Now that we have discussed the down payment, let's discuss the closing costs. The closing cost is the is the amount it will cost you to have the keys handed over to you. The cost of paperwork and title transfer make up this up front money. In some cases, the bank will add the closing cost to the loan, which will add to the monthly payment. Generally, up to 8% of the sales price is the amount of the closing cost.As a first time buyer you will be overwhelmed emotions, good and bad. Find a home that you would like to purchase and contact the mortgage marketing firm selling the property. They will take you through all the steps to get you into your dream house. Remember, this is your first time but a mortgage broker marketing company has sold houses a time or two. (Caitlina Fuller)